Pakistan is set to tap Chinese capital markets for the first time with a yuan-denominated Panda Bond issue next week, Finance Minister Muhammad Aurangzeb announced Saturday.
“God willing, next week you will hear good news that for the first time, we will be accessing Chinese capital markets through Panda bond,” he said at a press conference.
The $250 million issue is the first tranche of a planned $1 billion program. It will be backed by the Asian Development Bank and the Asian Infrastructure Investment Bank.
Aurangzeb said Pakistan's economy is showing signs of recovery, with rising exports and remittances, despite the strain from the war in Iran and closure of the Strait of Hormuz-critical for a country heavily reliant on imported fuel and gas.